Morguard Completes $410 Million Sale of Hotel Portfolio

Jan 19, 2024

MISSISSAUGA, ON, Jan. 19, 2024 /CNW/ - Morguard Corporation ("Morguard") (TSX: MRC) announced today the successful completion of its previously announced sale of a portfolio of 14 high-quality hotels for gross proceeds of $410.0 million. This strategic transaction signifies Morguard's progress in optimizing its real estate portfolio and sharpening its focus on core real estate investments.

"The successful conclusion of this deal is a testament to the appeal of our hotel portfolio and the strength of Morguard's management over the years," said K. Rai Sahi, Chairman and Chief Executive Officer. "We are pleased to have capitalized on the current market demand for high-quality hotels. This positions us well for future growth."

The portfolio, comprising 14 renowned hotels including Marriott, Hilton, IHG and independent hotels across Canada, specifically in the Greater Toronto Area (Toronto, Mississauga, Markham, Vaughan), Ottawa, Halifax, and Sudbury, was sold to an institutional purchaser. Further information about the properties being sold can be found in the appended section of this news release. Morguard will retain ownership of two hotels: the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa, Ontario and Inn at the Quay in New Westminster, British Columbia.

Upon closing the transaction, Morguard repaid first mortgage debt totaling $48.7 million, resulting in net proceeds of $361.3 million, before closing costs and customary adjustments. The liquidity provided by this transaction demonstrates Morguard's commitment to reduce indebtedness and pursue its core business objective of owning and managing a diversified real estate portfolio of office, industrial, retail, and multi-suite residential properties.

About Morguard Corporation

Morguard Corporation is a major North American real estate and property management company. Morguard has extensive retail, office, industrial and residential holdings owned directly and through its investment in Morguard Real Estate Investment Trust and Morguard North American Residential REIT. Morguard also provides real estate management services to institutional and other investors. Morguard's owned and managed portfolio of assets is valued at $18.3 billion. Please visit www.morguard.com or follow us on LinkedIn

Property

City

Province

Total
Rooms

Courtyard Marriott Markham

Markham

ON

144

Residence Inn Marriott - Markham

Markham

ON

100

Courtyard Marriott Mississauga

Mississauga

ON

144

Hilton Garden Inn Toronto Airport West

Mississauga

ON

152

Cambridge Suites Mississauga

Mississauga

ON

100

Holiday Inn Express

Ottawa

ON

115

Towne Place Suites by Marriott

Sudbury

ON

105

Courtyard by Marriott Toronto Airport

Toronto

ON

168

Hotel Carlingview Toronto Airport

Toronto

ON

112

Residence Inn by Marriott Toronto Airport

Toronto

ON

137

Toronto Airport Marriott

Toronto

ON

424

Courtyard Marriott Vaughan

Vaughan

ON

144

Cambridge Suites Hotel Halifax

Halifax

NS

200

The Prince George Hotel

Halifax

NS

203

TOTAL HOTEL



2,248

SOURCE Morguard Corporation

For further information: K. Rai Sahi, Chairman and CEO; Paul Miatello, Chief Financial Officer, T 905-281-3800 or email corporatemarketing@morguard.com